Automotive Sector Improves The Better Public Power Purchase

By : Ahmad Fadli And Aldi Firhand. A | Monday, October 02 2017 - 22:07 IWST

Chevrolet
Chevrolet

INDUSTRY.co.id - Jakarta- Bahana Securities believes that the recovery in automotive sales will be an indicator of improved public purchasing power, particularly the middle class.

"A number of positive sentiments began to overshadow the Indonesian economy, the recovery of auto sales and motorcycles in the industry is an indicator of improved public purchasing power," said Plt Head of Research and Strategy Bahana Securities Henry Wibowo, quoting ANTARA, Monday (2/10).

Data from the Association of Indonesian Automotive Industries (Gaikindo) showed that car sales grew 5.6 percent in August 2017 compared to the same period last year or 96,461 units.

Thus, total car sales in the period from January to August were 715,291 units, up 3.8 percent on an annual basis.

Meanwhile, the Indonesian Motorcycle Industry Association (AISI) noted that motorcycle sales rose 5 percent over the same period last year to 554,923 units.

Thus, total motorcycle sales from January to August stood at 3.793 million units.

Bahana estimates that by the end of the year, car and motorcycle sales will be in the range of 3 percent-5 percent. Car sales growth is expected to be better than motorcycle sales due to government-run energy reforms since the beginning of the year.

On the other hand, according to Henry, the move by Bank Indonesia (BI) to cut the BI Rate (BI 7-Day Repo Rate) to 4.25 percent in September will be a boost for the recovery of middle and lower class purchasing power.

"One of the sectors that benefited after BI cut its benchmark interest rate in August and September was the automotive sector, because the purchasing power of middle class people in general bought by installment was quite helpful," he explained.

News Comment

Today's Industry

Cyber Attack (Images by IDN Times Jabar)

Jumat, 21 Februari 2020 - 09:09 WIB

Cyber Attack Fears are Delaying Business Innovation

Survey conducted by bug bounty and pentesting platform, HackerOne, has revealed that IT projects are being stifled due to security concerns. More than 80% of UK CISOs and CTOs who were interviewed…

OnRobot (Images by Business Wire)

Kamis, 20 Februari 2020 - 15:33 WIB

OnRobot Expands Innovative Gecko Gripper Family with Compact Gecko Single-Pad Gripper

OnRobot, a global leader in robotic end-of-arm tooling, has launched a compact, single-pad version of its innovative Gecko no-mark adhesive gripper. The new Gecko Single Pad gripper brings the…

Synopsys, Inc. (Images by PR Newswire)

Kamis, 20 Februari 2020 - 15:13 WIB

Synopsys Announces First Application Security Testing Solution

Synopsys, Inc. Announced that it will release a major update to the Polaris Software Integrity Platform to extend its static application security testing and software composition analysis capabilities…

Coronavirus themed Malware (Images by Novel coronavirus COVID-19 FDA)

Kamis, 20 Februari 2020 - 14:46 WIB

Beware of the other virus, the spread of Coronavirus-themed Malware

While the world attempts to take control over the spread of the Coronavirus, and tries to contain, eliminate and prevent it from spreading, hackers around the globe have found the Coronavirus…

Synopsys Software Integrity Group (Images by BusinessNews Indonesia)

Kamis, 20 Februari 2020 - 14:07 WIB

How to Cyber Security, It’s all about developers, except when it’s not

To get security testing results in front of developers, who are in the best position to address them effectively, you need automation and integration. Product security is hard. The goal is to…